Implemented by: Potential Impact of HPAI on Ghana: A Multi-Market Model Analysis

Although income from poultry production is affected significantly by supply and demand shocks, effects on household income are limited due to the low share of poultry in households ’ total income. Poultry-related supply and demand shocks can result in income effects beyond poultry production through...

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Bibliographic Details
Main Authors: Christoph Schmitz, Devesh Roy, Key Findings
Other Authors: The Pennsylvania State University CiteSeerX Archives
Format: Text
Language:English
Subjects:
Online Access:http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.225.7368
http://www.ifpri.org/sites/default/files/publications/hpairb14.pdf
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Summary:Although income from poultry production is affected significantly by supply and demand shocks, effects on household income are limited due to the low share of poultry in households ’ total income. Poultry-related supply and demand shocks can result in income effects beyond poultry production through changes in incomes from maize and other food crops, and from labor involved in the poultry supply chain. With the high poultry imports to Ghana, supply and demand shocks on the domestic poultry sector are significant if the imports will be nonsubstitutes to the domestic poultry. Like in most African countries, the livestock sector is an important part of the economy in Ghana. At an aggregate level it contributes to about 7 percent of Ghana’s GDP and more than 40 percent to the agricultural GDP (Aning et al. 2008). Within the livestock sector, poultry comprising chicken, ducks, guinea fowls, turkeys, and ostrich constitutes an integral part of the rural farming system. Though Ghana has some commercial and semi commercial large farms, most poultry production – an estimated 60 to 80 percent – takes place at a smaller scale, where chickens are free range with minimal use of purchased inputs. Ghana also imports poultry. Poultry meat imports, particularly chicken, have increased more than four times between 2000 and 2005, and they account for around 75 percent of total consumption (Aning et al. 2008). This structure of the sector provides a situation where both the poultry sector including the linked sectors as well as livelihoods are likely to be affected if any shock were to occur to the poultry sector in Ghana. The comparatively large producers might be more affected since the income portfolio is less diverse compared to smallholder farmers in the traditional mode of production but this could vary in different contexts. One of the most formidable shocks that can affect the poultry sector is an outbreak of highly pathogenic avian flu (HPAI), which has had wide ranging effects on poultry and sectors related to it (see for